Kinetik Holdings Inc.

AI-generated fair value estimate for this company.

Method: Two-stage DCF off distributable cash flow (DCF, the standard midstream metric): base of $620.5M (FY2025 DCF) growing 7%/yr years 1-5 (consistent with FY2026 adjusted EBITDA guidance midpoint of ~+7% and ECCC Pipeline/Kings Landing project ramp), fading to 5%/yr years 6-10, 3% terminal growth, 9% discount rate (leveraged midstream, 3.8x leverage ratio); less net debt of $3,814M

Reasoning: Kinetik's EPS is volatile/depressed relative to EBITDA due to D&A and noncontrolling-interest allocations typical of a midstream structure, so DCF off distributable cash flow (not reported EPS) is the more representative method. DCF value of ~$9.71B is modestly above the ~$8.62B market cap, broadly consistent with the 11-analyst consensus (5 Strong Buy/3 Buy/3 Hold, average PT $54.73)